Urban Sports Club, Europe’s leading platform for sports and wellness, announces its latest funding round of €95 million. The round is led by Verdane, a specialist growth investment firm that partners with tech-enabled and sustainable European businesses. Several existing investors, such as HV Capital and ProSiebenSat1, have also participated in the latest round.
With the support of Verdane, Urban Sports Club plans to invest the new capital in further accelerating its fast-growing B2B business across seven European markets: Germany, the Netherlands, France, Belgium, Spain, Portugal, and soon, Austria. Additionally, the new capital will be used to enhance the platform and member experience, as well as to continue growing the partner network, which already includes more than 11,000 venues covering over 50 types of sports and wellness activities.
Growth fueled by B2B
The investment reflects Urban Sports Club’s focused strategy on the employee benefits market, which now represents the vast majority of its member base. In partnership with Verdane, Urban Sports Club is poised to further solidify its status as a leading provider of corporate sports and fitness in Europe. A testament to its success is the fact that Urban Sports Group is not only profitable but also experiencing rapid growth. Its net revenues have doubled from 2021 to 2022 and continue to show strong growth in 2023, with corporate clients being the primary growth driver. Since 2022, Urban Sports Club has successfully expanded its corporate client base by 2.5 times, now serving over 7,000 active companies of all sizes, from SMEs to large enterprises.
Employee well-being as a major trend
The tailwind for Urban Sports Club comes from a post-pandemic shift where companies are investing more in their employees’ wellbeing. According to Gallup research in 2022, over 70% of employees would not seek a new job if their employer invested in employee wellbeing. This factor is especially crucial in today’s environment of skilled worker shortages, making it a key differentiator. As a result, the primary way Urban Sports Club members join the platform is through their employers. Additionally, about 70% of Urban Sports Club’s corporate members reported that the membership has led to reduced stress (48%), better sleep (9%), or decreased sickness (9%).
Staffan Mörndal, Partner at Verdane, says: “We’re beyond excited to partner with Urban Sports Club. The company is a driving force behind employee wellbeing and has revolutionised access to sports and wellness for companies and individuals alike. The team has displayed great execution over the years, which has put it in today’s position of sustainable and continued growth. We are very much looking forward to shaping the future of the industry together.”
Moritz Kreppel, CEO and co-founder of Urban Sports Club adds: “With Verdane, we welcome on board one of the most renowned growth investors. We are fully convinced that Verdane’s expertise and investment culture is a great fit for our purpose of inspiring people to lead active and healthy lives. Together we are well positioned to scale Urban Sports Club to the next level in the months and years to come.”
Read the orginal article: https://www.eu-startups.com/2023/12/berlin-based-urban-sports-club-secures-e95-million-for-its-sports-wellness-platform/
